Jonathan has a lawn care business. He adds all of the debits on the left side, and then adds the credits on the right. He then subtracts the smaller number from the larger one. The difference is the

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Answer 1

The difference that Jonathan calculates by subtracting the smaller number (either total debits or total credits) from the larger number is typically referred to as the account balance or net balance. In accounting, this process helps determine whether the business is in a profit or loss position for a specific period. If the debits exceed the credits, it indicates a loss, while if the credits exceed the debits, it indicates a profit.